The year 2019 was one of the most challenging years for the global automotive industry with a handful of major markets around the world seeing a major decline in sales. However, in spite of the same, China has retained its position as the largest passenger vehicle market in the world. This also reflected a year-on-year decline of 9.5 per cent.
India, on the other hand, ranked on the 5th spot after recording a year-on-year decline of 12.7 per cent. A total of 29,62,100 passenger vehicles last year as against the 33,94,700 units it sold in 2018.
China suffered a whopping 92 per cent decline in year-on-year growth of sales in February this year. Even before the outbreak, auto sales in the country were heading for an unprecedented third straight annual decline because of a slowing economy and trade tensions.
As the situation slowly gains normalcy in China, the government is handing out cash to car buyers in order to revive the auto industry. In comparison to the sales of last year’s first quarter, the Chinese auto industry suffered a decline of 42 per cent, according to a data released last week by the China Association of Automobile Manufacturers (CAAM).
The auto industry in China plays a crucial role in the country’s economy where more than 40 million people rely on the sector for jobs. The industry generates more than $1 trillion in revenue each year that amounts roughly 10 per cent of the country’s manufacturing output.
At the moment, China’s economy is still trying to rebound after the government imposed a lockdown on major cities and restricting travel. Car production, at least, has started to resume in China: Even Wuhan, the original epicentre of the virus and a major hub for the global auto industry, ended its 76-day lockdown last week.
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